Containers at a shipping terminal in Yokohama, Japan on Oct. 18, 2021. Japan’s trade deficit surged in September as imports overwhelmed export growth.<\/p>\n
Kiyoshi Ota | Bloomberg | Getty Images<\/p>\n
Japan’s exports climbed 14.8% in April, the fastest pace since January and solidly beating expectations on a surge in semiconductor shipments.<\/p>\n
The figure was sharply higher than the 9.3% expected from Reuters. <\/p>\n
Imports increased 9.7% year-on-year, versus an expected 8.3% rise, according to government data. The country’s trade balance narrowed to 301.9 billion yen in April, from 643 billion yen in March. <\/p>\n
The rise was powered by a surge in semiconductor shipments, which rose 41.6% year on year. <\/p>\n
Total exports to China \u2014 Japan’s largest trading partner \u2014 were up 15.5%, while exports to the U.S. rose 9.5%. <\/p>\n
The yen strengthened marginally against the dollar, trading at 158.88.<\/p>\n
GDP data on Tuesday<\/a> had shown that net exports were still one of Japan’s main economic drivers, with the economy expanding 0.5% quarter on quarter and 2.1% on an annualized basis.<\/p>\n Japan is currently struggling with a weak yen, having spent a reported 10 trillion yen<\/a> on intervening in the yen at end of April and the start of May. While a weak yen is likely to boost exports, it also causes domestic worries by pushing up imported inflation and weakening purchasing power. <\/p>\n